Execution speed is not critical for most traders, but if you are a
scalper then, depending upon how you place your entries, it
will be a factor.

I had some discussion with FinProTrading technical support once,
complaining about execution times. Their claim was that once
they receive my order, then they take an average of 50 milliseconds
to execute it. But MT4 execution is subject to a number of
"layered factors".

With most MT4 brokers, your order first hits an “Aggregator” which
delays and tries to aggregate size from various brokerage clients,
before attempting execution; and then the trade is exposed
to Liquidity Providers for execution. This implies the brokerage
may execute an “aggregated trade” at least some proportion
of which is YOUR trade.

Brokers have the capability to flag your account to BYPASS the
Aggregator phase… But whether they will or not, is brokerage
dependent. I’m not saying you should ask for this, but if you
are “latency sensitive” then you should ask, especially if you
are able to do a higher level of business with the broker.

IN ANSWER TO YOUR QUESTION: It varies, but a reasonable
expectation for Limit (MT4 pending) order placements is a
"round trip" time of perhaps 80 msecs best case, and for
Market Order fills, a best case of 120 msec or so…

These times may double x2 or even x3 rarely, with normal variability…

There is variability in these timings and, in my case, I have
multi threaded Java software, layered on top of the NJ4X
API which must perform interprocess communication to the
Terminal Server, where it selects which MT4 "terminal.exe"
will execute the order request. It may burn up 20 msecs
worst case in doing this, I’d guess.

How’s that for TMI (aka “too much information”) ? LOL

But I can tell you that for these brokers, which use TurnkeyFX.com
as the service provider, the executions are very very consistent,
and “slippage” is negligible. Obviously price can move a lot
in 100 milliseconds, but these are not usually on timescales
we ordinary traders care about…

If you consider what traders call “slippage”. Traders complain that
the broker does not give the price they are expecting. But usually
that is because they are “chasing” a fast moving price, so their
execution is worse than they wanted at the moment of submitting
a Market order. With Pending type orders, they convert to Market
Orders on the broker’s servers, and their “slippage” is almost
undetectible from a practical perspective.

I always use “slippage” to my advantage, by BUYing against a falling
price, and SELLing against a rising price. So any latency factors
or other slippage related factors, actually work in my favor.

BOTTOM LINE IS that these brokers are exceptionally consistent
and accurate, when you consider that these are only Retail
connections which support very small lot sizes down to 0.01
(1,000 Currency Units) at no penalty in execution…

Thank you for that detailed clarification. Basically, unless
you have extremely close control over your trades, you
are unlikely to be using much of your Maximum Buying Power
on any given trade. Leverage is considered "dangerous"
because you could quickly lose a substantial proportion
of an account if you ABUSE leverage.

On the other hand, with a “quality” brokerage, and adequate
"backup systems" and “safety net” strategies, whatever
those may be… in those cases you may use a substantial
proportion of your buying power.

Bottom line here is that IF you confidently control the
situation, then these 400:1 brokerages give you several
advantages:

You need less equity in an account for a given Buying
Power and, therefore Revenue Potential.

If you have concerns about the safety of your funds,
you are keeping less cash in the brokerage.

MY VIEW: If you are not using your Buying Power,
then why are the funds in the brokerage account?

All of this as compared to a 50:1 leverage with the
remaining U.S. brokers; so we have with 400:1
8x the Buying Power in these brokerages which,
if fully deployed (VERY CAREFULLY) give you
a lot of “bang for your buck”…

IN ANSWER TO YOUR QUESTION: It varies, but a reasonable
expectation for Limit (MT4 pending) order placements is a
"round trip" time of perhaps 80 msecs best case, and for
Market Order fills, a best case of 120 msec or so…

These times may double x2 or even x3 rarely, with normal variability…

Thanks for sharing this. So effectively, you believe that 80 msec would be best and worse case would be 360 msec. I think with forex, given its such a fast moving market, 360 ms will almost kill the trades but in all honesty I have seen delays that are way worse than this one. But its helpful to have these sorts of benchmarkings when comparing the brokers.

HyperScalper:

in my case, I have multi threaded Java software, layered on top of the NJ4X
API which must perform interprocess communication to the
Terminal Server, where it selects which MT4 "terminal.exe"
will execute the order request. It may burn up 20 msecs
worst case in doing this, I’d guess.

In all honesty, I have no experience in what you just described above, but I will love to try and learn more about it. It sounds very intersting. But whats amazing is that your java application is able to do all these calculations in 20 msecs. So, do you keep all the terminals open / live or do they get invoked when your application has to place an order.

It’s good that cryptos are being increasingly added as funds transfer
mechanisms.

My problem with FXChoice is that they are not competitive
on Bid/Ask spread pricing, nor commissions, nor
execution speeds; as compared
with FinProTrading or TurnkeyForex brokerages.

That puts these Carribean brokers in a difficult position,
if they want to be competitive.

[EDIT] Trying to be competitive, FXChoice already has MT5, which
I evaluated because I wanted to ensure the NJ4X.com API framework
would support mixed MT4 and MT5 terminals, and it does…
But the pricing, and other factors, are challenged to compete
with the other brokers I mentionned.

hyperscalper

Text of their email is:
"We are delighted to announce that clients can now deposit, trade and withdraw Bitcoin Cash (BCH).

BCH deposits are subject to a 0.5% processing fee, while the withdrawal fee is only the mining fee attached to it.

This is good news ! And BCH has way way lower mining fees when compared to BTC. Especially for the ones who want to make small and micro transfers. Nice to see cryptos crawling up the priority list amidst all the regulatory headwinds.

…I will just paste the text content of the email announcement…
…I have not evaluated in any details yet…

"SECURITY ALERT FOR YOUR ACCOUNT! : You can log into your Metatrader 5 platform secure client area, by using your existing username and password. However, you must set a Two-factor Authentication (2FA) separately for the MT5 user site.

Set MT5 2FA

How to setup 2FA

WHAT ABOUT MY MT4 ACCOUNTS? You will always be able to access your existing MT4 accounts on the MT4 user site at Log In - Evolve Markets. Evolve Markets is not discontinuing MT4. The MT4 user site is separate from the MT5 site.

MT4 Client Site Login

SHOULD I CHANGE MY LOGIN PASSWORD? Your web user login and password for MT4 and MT5 are the same for this announcement for your convenience. However, the platforms and web user management sites are managed independently. Upon changing your web login password by using the MT4 user site at Log In - Evolve Markets, it will not change the password on the MT5 user site at Log In - Evolve Markets.

MT4 Client Site Login
MT5 Client Site Login

Thank you for trading with Evolve Markets. We value our loyal clients and appreciate your ongoing business with us.
NEED MORE INFORMATION or QUESTIONS? Please contact our Support at support@evolve.markets.

Has anyone try to withdraw from Turnkey or Finprotrading? If so how long does it takes to get your money back? And what transfer method did you use… I’m thinking about opening an account with Turnkey and I want to fund it with skrill. Is that a good transfer method? Oh one more question, if I fund my account less than $2500, can i still trade with 400:1? I live in the US.

I use Crypto transfer. My complaint is that they take their
time “reviewing” the withdrawal before they pull
it into your crypto wallet at the brokerage. That can take 24-48
hours.

Don’t know about using Skrill as a method…

Well, that’s a lot of exposure to a USD to BTC exchange
rate in the intervening 24 to 48 hours. Only solution to that is to pull to
the crypto wallet in multiple smaller amounts to reduce
the per transaction exchange rate fluctuation.

After that, it’s all on “crypto time” how long it takes to credit to you.

Of course if you use Evolve.Markets then it’s all on BTC, so
you entire account is subject to fiat/crypto exchange rate fluctuations !!!
Only kidding, but it’s true.

At TurnkeyForex you can have 400:1 with $100 or so… I suggest you
get a pure ECN type of account, with separate commission and
variable spreads for Forex, and do not accept any “bonus” money.

I don’t think there’s a significant delay in Deposit, as
there is with Withdrawal. They appear to need a manual
review for withdrawal.

Note that TurnkeyForex or
FinProTrading gives you a BTC Wallet. So you send
Coins to that Wallet first. Then once that is confirmed,
from that Wallet, you fund a specific Live account
with a specific amount, so obviously (if you are USD)
they will BUY USD with the coin and I believe it appears
fairly quickly in your brokerage account.

Note that if you hold other Crypto such as Ethereum,
BitcoinCash or others; then you may use the ShapeShift.io
service to change from one crypto to another, and have it
sent to the destination wallet you choose. This requires
some care and practice, and a refund wallet address in case there is
a (rare) issue with the crypto conversion. Basically ShapeShift.io
acts like a “pipe” into which one Crypto is deposited, and out
of which the other Crypto is then sent to a destination wallet.

I would just CAUTION that if you want to keep your
Exposure to Fiat/Crypto rates to a minimum, that you do not
hold the cryptos any longer than you need for the funds transfer
process back into your “fiat” currency. However, nothing stops
you from “investing” in the Cryptos as part of your strategy,
meaning timing your transfers to your advantage, but I wouldn’t recommend that.

Note that if you did hold substantial crypto you would technically become
subject to Capital Gains / Losses, so I’d just keep that to a minimum.

I’ve got a quick question concerning deposits for FinPro. I am curious to know if they limit any of their listed deposit methods to US clients, as I am a US resident seeking another trustworthy broker aside from FX Choice who I currently use. I’ve searched the thread and related posts and have yet to find an exact answer yet, so I thought to now ask.

They have listed about 10 methods, and no disclaimer stating a restriction on location to use any of the methods, but if anyone personally knows any more info, I’d love to find out! Thanks.

Thanks Scalper… You’re the best! Quick question. I just signed up with TurnkeyForex today… How long does it usually take for them to verify the account? The email said 24 hours, but I just wanted to know if it was usually quicker than that…

They use a Crystal Ball to Pre-Verify clients,
which is why you got onboard so quickly !!!

[EDIT] These are technologies which are illegal
in the U.S. and only available Offshore !
[CORRECTION] In the U.S. you are subject
to “surveillance capitalism” so they always
know what you’re just about to do !! LOL

I know someone who has 5-6 figures in PaxForex who is using a VIP account. He said spreads are low and withdrawals are fast, even large amounts. He seemed to trust them a lot, but I was skeptical because the thread says that they are a market maker (Dealing-Desk) broker. I told him this and he asked his account manager about it.

The account manager replied saying they are a real ECN/STP model, not a dealing desk, and mentioned that they have been in the market for 8 years already.

Apparently, PaxForex is not a market-maker(?) at least for VIP accounts(?) Can anyone verify this?

For large trades in large accounts (such as a PaxForex VIP account), a market-maker needs the ability to immediately offload positions which cannot be offset in-house, and are too large to hold naked. Such trades are typically passed directly upstream to a liquidity provider, making the broker in these cases (only) an STP (straight-through processing) broker. PaxForex handles large trades in this fashion. However, there is every indication that most trades are handled by PaxForex using the market-maker business model.

It appears that PaxForex is physically located somewhere in eastern Europe (GMT+2 time zone), with customer service facilities in Isle of Man, and corporate registration (only) in SVG.

The parent of PaxForex is Laino Group, about which I have found no information.

I wanted to update the group. I got all of my balance from Capital City Markets today. Took just under a month from start to finish, which isn’t acceptable, but I got the $$ which is of course the most important thing. My experience with execution, etc was good. Their spreads are too high, especially for an offshore broker, but it was all upfront. Now the question is, do I put my $$ into OANDA, or go back offshore? Thanks again to the contributors of this thread (especially Clint).

If you use a credit card to deposit/withdraw from your offshore broker, you need to read this article from Finance Magnates

Unregulated brokers are about to get a much tougher time to attract new clients

As we have known for many months, the nanny state is targeting payment processors as a way of isolating offshore brokers from their U.S. clients.

Apparently, the nanny state now “owns” MasterCard.Visa will likely fall into line shortly.

After reading this Finance Magnates article, you will have more questions than answers. Finance Magnates can’t possibly detail the status of every offshore broker, or every offshore jurisdiction. To find out how this new MasterCard policy might affect your broker, and your account, you will need to talk to your broker directly.

This new MasterCard policy will take effect in 6 months, so offshore brokers have some time to prepare, and to adjust as needed. Consequently, it’s quite probable that your broker has not yet determined their own response to this latest assault by the nanny state. And, therefore, your broker may not be able to answer all your questions at this time.

But, you need to be aware of what’s coming, and you need to be prepared to do your own due diligence regarding threats to the money-transfer pipeline between you and your broker.

EDIT

Additional information from Finance Magnates

The crackdown on unregulated brokers starts from several regulators and government agencies

[U]Excerpts from the article[/U] –

"Earlier this week we broke the news that Mastercard is taking action to classify certain transactions as high risk and therefore provide ample time for chargebacks on the part of depositors. Today we can confirm what we suspected a couple of days ago: the effort from the card issuer is part of a well-coordinated campaign that includes several regulators and government agencies.

"Thus, the likelihood that VISA will follow up with a warning of its own against CFD, forex, crypto, binary options brokers and ICOs is a virtual certainty.

“In a letter from a partner bank to a payment processor that is clarifying the stance of the institution on Mastercard’s statement, the new and restricted rules for the so-called “high-risk merchants” are elaborated upon.”

I added the bold type above, for emphasis.

After reading the entire _Finance Magnate_s article, you will probably be left scratching your head, asking “How is this going to affect my broker, and my account?” As suggested in the original post (above), this latest attack on the money-transfer pipeline between clients and brokers will not be fully implemented for almost six months, and it’s likely that nobody – including your broker – yet knows the answers to your questions.

Don’t waste your time trying to interpret the legalese being reported in articles such as the one quoted here. Instead, if you transact with your broker via credit card deposits and withdrawals, leave it to your broker to determine how to adjust to this new credit card paradigm.

Look for an announcement from your broker within the next few weeks, outlining their credit card policies going forward. If no announcement is forthcoming, contact your broker directly, and stay in touch with them, until your particular position is clarified.

First post as I have been following blog for sometime so as my way of
saying thanks, I just want to contribute. As far as Pax Forex, my advice is to stay away. I don’t know how they operate today but several years ago when I joined. I was making profits and they didnt like this. So they increased the spread in one of the currency pairs nzd/cad by 30 pips. And by the time I got into the trade, it was too late as I couldn’t believe my eyes. luckly, I only lost $100, but since then, I’ve ran far away. Just google paxforex scam and you will see others who got taken by them. They definitely are a market maker. I too was with capital city market. But since it now takes about a month to get ones money back, I’ve lost faith in offshore accounts that are not regulated. I’m with oanda now. Though the leverage sucks 1:50, one can still make a living if one knows what they are doing. Plus, I sleep better at night. Don’t have to worry whether I’m going to get my money back. I always believe in thinking long term and joining a broker that’s offshore whose not regulated to me is risky because at anytime, they can decide to pull the rug under you and who are going to complaint to? Please traders, do your due diligence. Until Dodd frank bill is repealed, I will keep my money at home and maybe put what I don’t mind loosing to these offshore brokers. Just my two cents. Thanks all for the wealth of knowledge with this blog.